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It is the sense of the Congress that the insurance industry should build capacity and
[Page: S12258] GPO's PDF
SEC. 9. PROCEDURES FOR CIVIL ACTIONS.
(a) FEDERAL CAUSE OF ACTION.--There shall exist a Federal cause of action for property damage, personal injury, or death arising out of or resulting from an act of terrorism , which shall be the exclusive cause of action and remedy for claims for property damage, personal injury, or death arising out of or resulting from an act of terrorism . All State causes of action of any kind for property damage, personal injury, or death otherwise available arising out of or resulting from an act of terrorism , are hereby preempted, except as provided in subsection (f).
(b) GOVERNING LAW.--The substantive law for decision in an action for property damage, personal injury, or death arising out of or resulting from an act of terrorism under this section shall be derived from the law, including applicable choice of law principles, of the State, or States determined to be required by the district court assigned under subsection (c), unless such law is inconsistent with or otherwise preempted by Federal law.
(c) FEDERAL JURISDICTION.--
(1) IN GENERAL.--Notwithstanding any other provision of law, not later than 90 days after the occurrence of an act of terrorism , the Judicial Panel on Multidistrict Litigation shall assign a single Federal district court to conduct pretrial and trial proceedings in all pending and future civil actions for property damage, personal injury, or death arising out of or resulting from that act of terrorism .
(2) SELECTION CRITERIA.--The Judicial Panel on Multidistrict Litigation shall select and assign the district court under paragraph (1) based on the convenience of the parties and the just and efficient conduct of the proceedings.
(3) JURISDICTION.--The district court assigned by the Judicial Panel on Multidistrict Litigation shall have original and exclusive jurisdiction over all actions under paragraph (1). For purposes of personal jurisdiction, the district court assigned by the Judicial Panel on Multidistrict Litigation shall be deemed to sit in all judicial districts in the United States.
(4) TRANSFER OF CASES FILED IN OTHER FEDERAL COURTS.--Any civil action for property damage, personal injury, or death arising out of or resulting from an act of terrorism that is filed in a Federal district court other than the Federal district court assigned by the Judicial Panel on Multidistrict Litigation under paragraph (1) shall be transferred to the Federal district court so assigned.
(5) REMOVAL OF CASES FILED IN STATE COURTS.--Any civil action for property damage, personal injury, or death arising out of or resulting from an act of terrorism that is filed in a State court shall be removable to the Federal district court assigned by the Judicial Panel on Multidistrict Litigation under paragraph (1).
(d) APPROVAL OF SETTLEMENTS.--Any settlement between the parties of a civil action described in this section for property damage, personal injury, or death arising out of or resulting from an act of terrorism shall be subject to prior approval by the Secretary after consultation with the Attorney General.
(e) LIMITATION ON DAMAGES.--Punitive or exemplary damages shall not be available in any civil action subject to this section.
(f) CLAIMS AGAINST TERRORISTS.--Nothing in this section shall in any way limit the ability of any plaintiff to seek any form of recovery from any person, government or other entity that was a participant in, or aider and abettor of, any act of terrorism .
(g) OFFSET--In determining the amount of money damages available under this section, the court shall offset any compensation or benefits received or entitled to be received by the plaintiff or plaintiffs from any collateral source, including the United States or any Federal agency thereof, in response to or as a result of the act of terrorism .
(h) EFFECTIVE PERIOD.--This section shall apply only to actions for property damage, personal injury, or death arising out of or resulting from acts of terrorism that occur during the effective period of the Program, including, if applicable, any extension period under section 6.
SEC. 10. REPEAL OF THE ACT.
This Act shall be repealed at the close of business on the termination date of the Program under section 6(a), but the provisions of this section shall not be construed as preventing the Secretary from taking, or causing to be taken, such actions under sections 4(c)(4), (5), sections 5(a)(1), (c), (e), section 6(d), and section 9(d) of this Act and applicable regulations promulgated thereunder. Further, the provisions of this section shall not be construed as preventing the availability of funding under section 4(d) during any period in which the Secretary's authority under section 6(d) is in effect.
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Key Provisions of the Terrorism Risk Insurance Act of 2001
All property and casualty policyholders are covered, including those insured under workers compensation policies and those with business interruption coverage.
Federal tax dollars will be paid as compensation to insured victims of terrorist attacks, not to insurance companies.
The insurance industry would fully cover losses arising from certified acts of terrorism , up to $10 billion in each year. The government will provide compensation for 90 percent of losses exceeding $10 billion, with the insurance industry continuing to pay for 10 percent of the losses.
The program is temporary, expiring after two years. The Treasury Secretary has the option to extend the program for one additional year.
The Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General, will determine whether an event qualifies as a terrorist attack.
In order for property and casualty insurers to participate in the program, insurers are required to offer terrorism coverage to all of their policyholders under terms that are consistent with their other property and casualty policies.
Insurance companies are required to disclose to customers which portion of their premiums they are paying for terrorism risk coverage, apart from other property and casualty coverages.
Careful, narrow restrictions on lawsuit liability are included to protect taxpayer funds from being exposed to opportunistic, predatory assaults on the U.S. Treasury.
The State system of insurance regulation is preserved with very few exceptions. First, the definition of an ``act of terrorism'' under the bill will become the definition in every state. Also, the small number of states that require pre-approval of rate will be restrained from doing so far terrorism risk coverage during the first year. This does not, however, preempt a state insurance regulatory's ability to review and revise the rates once they are in effect. Finally, the Secretary of the Treasury would have access to the books and records of participating insurers in all States.
Mr. ENZI. Mr. President, today I join with Senators GRAMM, BUNNING, and BENNETT in introducing legislation that provides a temporary public-private partnership for terrorism insurance in the wake of the September 11 attacks. This bill provides a joint partnership between insurance companies and the Federal Government for the next 3 years in cases of terrorist attacks.
September 11 has proven to be the most expensive disaster to ever take place on American soil. With cost estimates ranging from $40 to $60 billion, the attacks have drained the capital reserves of some of the largest insurance companies in the world. In addition, as we know all too well, the risk for future attacks is very high. In the absence of this legislation, the insurance industry would be unable to pay the potentially extraordinary costs, and the Federal Government would likely be responsible for the entire costs. This is preemptive legislation.
I believe this legislation strikes the right balance between what the responsibilities should be between the insurance industry and the Federal Government. In each of the first 2 years, the insurance industry is responsible for the first $10 billion of any attack. By placing a $10 billion initial retention for the insurance industry, we ensure that the Federal Government does not get involved unless it is absolutely necessary.
After that, we agree the Federal Government should pay 90 percent of the remaining costs up to a $100 billion threshold. After the first 2 years, the Secretary of the Treasury will decide whether the industry is prepared to once again begin offering this type of coverage. If he believes they are not prepared, he may extend the program for 1 additional year.
This legislation also includes special provisions for small businesses which might be affected by terrorist attacks. A small business that is located in a building that is destroyed requires different treatment than a global corporation. Whereas a large, multinational corporation has offices all over the world with different lines of revenue, a small business could be eliminated by a single incident that would likely destroy all their equipment, possibly kill personnel, and virtually make it impossible for the business to continue. This bill allows for small businesses to recover lost profits and receive funding for business interruptions due to an attack.
I am sure that many of my colleagues have heard from their State insurance regulators the same as I have. My State insurance commissioner informs me that few, if any, of the new policies being submitted for next year's coverage offer terrorism insurance . With insurance being primarily regulated by the States, this has caused a backlog of filings from being approved and paperwork is quickly accumulating at the State level. We must act quickly to alleviate this backlog that will lead to uncertainty in the marketplace.
The legislation also includes very targeted liability provisions. These
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In closing, I would only like to add that I believe the insurance industry should be commended for the way in which they've handled the September 11 crisis. Despite losing many employees in the bombing, they were one of the first groups at the front of the line offering their assistance and support for the victims. To my knowledge, not a single company has attempted to withhold payment from this disaster. They have been most cooperative in working through the myriad proposals that have been circulated and their support has expedited this process.
I look forward to working with my colleagues to move this legislation before we adjourn.
By Mr. CORZINE (for himself, Ms. SNOWE, Ms. CANTWELL, Mr. DODD, Mr. LEAHY, and Mrs. MURRAY):
S. 1752. A bill to amend the Public Health Service Act with respect to facilitating the development of microbicides for preventing transmission of HIV and other sexually transmitted diseases; to the Committee on Health, Education, Labor, and Pensions.
Mr. CORZINE. Mr. President, I rise today to introduce legislation, the Microbicides Development Act of 2001. I am very pleased to be introducing this bipartisan bill along with my colleagues, Senators SNOWE, CANTWELL, DODD, LEAHY, and MURRAY. I extend my gratitude to Senator CANTWELL, in particular, for her support and assistance in the development of this legislation. Additionally, I applaud the efforts of my colleague in the House of Representatives, Republican Congresswoman CONNIE MORELLA of Maryland, for her leadership on this important issue. We all believe this initiative is vital to the pursuit of combating the global HIV/AIDS crisis.
As you know, tomorrow, December 1, is World AIDS Day. Twenty years ago, the Centers for Disease Control became aware of a virus that was claiming the lives of thousands of gay men in the United States. Throughout most of the 1980s, we thought of AIDS purely as a gay men's disease. Twenty years later, we find that we couldn't have been more wrong, as we have seen this disease spread globally to women, children, and heterosexual men, infecting and killing millions.
Today, women and children are being impacted by this epidemic at alarming rates. Every day, 6,300 women worldwide become infected with HIV. In fact, women now represent the fastest growing group of new HIV infections in the United States. AIDS is the fourth leading cause of death among women aged 25 to 44 in this country. Unfortunately, I have seen the devastation that this disease is having on women, as New Jersey has the Nation's fourth highest HIV/AIDS infection rate among women, and the second highest infection rate among all adults.
Despite this growing trend, however, there exists absolutely no HIV or STD prevention method that is within a woman's personal control. Condom use must be negotiated with a partner. We are all aware that for too many women, particularly low-income women in the developing world who reply upon a male partner for economic support, there is no power of negotiation. We know these women are at risk, yet, we expect them to protect themselves without any tools.
Today we have the opportunity to invest in groundbreaking research that can produce these tools, and ultimately, empower women. Microbicides are self-administered products that women could use to prevent transmission of STDs, including HIV/AIDS. I say ``could,'' because due to insufficient research investments, no microbicides have been brought to market. This legislation would encourage federal investments for microbicide research through the establishment of programs at the National Institutes for Health, NIH, and the Centers for Disease Control and Prevention, CDC.
In addition to investing new resources in microbicide research, the Microbicides Development Act will expedite the implementation of the NIH's 5-year strategic plan for microbicide research, as well as expand coordination among Federal agencies already involved in this research, including NIH, CDC, and the United States Agency on International Development, USAID. The bill also establishes Microbicide Research and Development Teams at the NIH. These teams will bring together public and private scientists and resources to research and development microbicides for the prevention of HIV and STD infection.
The Microbicides Development Act of 2001 has the potential not only to save millions of lives, but also to save billions in health care costs. Every year, 15 million new HIV and other STD infections occur among Americans aged 15 and older. The direct cost to the U.S. economy of STDs and HIV infection is approximately $8.4 billion. When the indirect costs, such as lost productivity, are included, that figure rises to an estimated $20 billion.
While new therapies are being developed to prolong the lives of individuals infected with HIV/AIDS--and we must continue developing new therapies--only prevention can truly ensure the safety and health of those vulnerable to infection. If we do not pay a small price now to invest in new prevention methods, we will pay a much higher price later.
Federal support for microbicide research is crucial. Numerous small biotechnology companies and university researchers are actively engaged in microbicide research, but they are almost totally dependent on public-sector grants to continue their work and to test their products. Existing public sector grants for microbicides, however, are too small and too short-term to move product leads forward. According to the Alliance for Microbicide Development and other health advocates, in order to bring a microbicide to market within the next 5 years, current Federal investments in microbicide research should be increased to $75 million this year. The NIH currently invests only $25 million a year, or 1 percent of its total HIV/AIDS budget, in such important research.
This legislation will make microbicide research the priority it should be, a priority the Federal Government must have if it expects to save the lives of women and their children worldwide, who, 20 years after the first AIDS death, will otherwise become victims of a preventable disease.
In closing, I would like to request that an opinion piece written by United Nations' Secretary General Kofi Annan that appeared in the Washington Post yesterday be included in the RECORD. In his comments recognizing World AIDS Day, Secretary Annan reiterates the importance of investing in new prevention methods as we continue to fight against AIDS.
There being no objection, the material was ordered to be printed in the RECORD, as follows:
No Letting Up on AIDS
Every day more than 8,000 people die of AIDS. Every hour almost 600 people become infected. Every minute a child dies of the virus. Just as life--and death--goes on after Sept. 11, so must we continue our fight against the HIV/AIDS epidemic. Before the terrorist attacks two months ago, tremendous momentum had been achieved in the fight. To lose it now would be to compound one tragedy with another.
New figures, released in advance of World AIDS Day, Dec. 1, show that more than 40 million people are now living with the virus. The vast majority of them are in sub-Saharan Africa, where the devastation is so acute that it has become one of the main obstacles to development. But parts of the Caribbean and Asia are not far behind, and the pandemic is spreading at an alarming rate in Eastern Europe.
For too long, global progress in facing up to AIDS was painfully slow, and nowhere near commensurate with the challenge. But in the past year, for much of the international community the magnitude of the crisis has finally begun to sink in. Never, in the two long decades that the world has faced this growing catastrophe, has there been such a sense of common resolve and collective possibility.
Public opinion has been mobilized by the media, nongovernmental organizations and activists, by doctors and economists and by people living with the disease. Pharmaceutical companies have made their AIDS drugs more affordable in poor countries, and a growing number of corporations have created programs to provide both prevention
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